Borr Drilling Limited - Sale of rig

Rhea-AI Summary

Borr Drilling Limited (BORR) has announced an agreement to sell its cold stacked jack-up drilling rig 'Atla' to an independent operator, with completion expected in Q4 2020. This sale follows the earlier sale of the rig 'Eir' in October, collectively generating cash proceeds of USD 13 million. With these sales, Borr Drilling is executing its fleet strategy to divest inactive rigs while focusing on its modern fleet, now comprising 28 assets built after 2011, with one remaining cold stacked rig likely to be sold soon.

Positive

• Executed sale of two cold stacked rigs, generating total proceeds of USD 13 million.
• Focus on divesting inactive units strengthens the company's modern fleet strategy.

Negative

• None.

OSLO, Norway, Oct. 28, 2020 /PRNewswire/ -- Borr Drilling Limited (the "Company") (NYSE: "BORR", OSE: "BDRILL") has entered into an agreement to sell its cold stacked jack-up drilling rig "Atla" to an independent operator. The completion of the sale is expected in the fourth quarter 2020. Together with the previously announced sale of the standard jack-up drilling rig "Eir", which has been completed in October, the Company will record total cash proceeds of USD 13 million.

With the sale of these jack-ups, Borr Drilling continues to deliver on its fleet strategy of divesting inactive, cold stacked units and focus on the modern and highly efficient core fleet of premium jack-up rigs. Following these rig sales, Borr Drilling will have 28 modern assets built after 2011, and one remaining older cold stacked rig which is likely to be sold within the fourth quarter.

28 October 2020
Hamilton, Bermuda

Questions should be directed to:
Magnus Vaaler
VP Investor Relations and Treasury
+47 22 48 30 00

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Forward looking statements:

This press release includes forward looking statements, which do not reflect historical facts and may be identified by words such as "expected", "likely" and "will" and similar expressions and include statements relating to the completion of the sale of rigs, total cash proceeds and other non-historical matters. Such forward-looking statements are subject to risks, uncertainties and other factors could cause actual events to differ materially from the expectations expressed or implied by the forward-looking statements included herein and other factors described in the section entitled "Risk Factors" in our regulatory filings and periodical reporting. These forward-looking statements are made only as of the date of this release. We do not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

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SOURCE Borr Drilling Limited

FAQ

What rigs did Borr Drilling sell recently?

Borr Drilling sold the cold stacked jack-up rigs 'Atla' and 'Eir'.

How much cash did Borr Drilling generate from the rig sales?

Borr Drilling generated a total of USD 13 million from the rig sales.

What is the status of Borr Drilling's fleet after these sales?

After the sales, Borr Drilling has 28 modern assets built after 2011 and one remaining cold stacked rig.

When is the sale of the rig 'Atla' expected to be completed?

The sale of the rig 'Atla' is expected to be completed in the fourth quarter of 2020.